International Marketing

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Contents Synopsis 2 Marketing entry strategy 2 Market Entry Mode 4 Brand positioning 5 The potential opportunities in the global market 7 SWOT 9 Strengths 9 Weaknesses 10 Opportunities 10 Threats- 11 Market size and its growth (Sales, Development) 12 New Market: BRAZIL, Why and how 13 PEST Analysis 14 Marketing Mix 18 Product: 18 Place: 19 Price 19 Promotion: 20 Recommendations 22 Environmental Aspects 24 Social Responsibility 25 Economic Growth 25 Bibliography 26

Synopsis
IKEA first began in 1930s when Ingvar Kamprad the founder had an idea to create innovative products related to home furnishing. The name ‘IKEA’ originates from Sweden standing for co-founder Ingvar Kamprad, his family farm - Elmtaryd and Agunnaryd, the village that Ingvar grew up in. It is on the family farm where Ingvar opened the first ever warehouse, in a small little shed in 1948.
His concept was to design innovative and fashionable products by using cheap resources to keep cost low. This is where Ingvar applied what he had learnt in Smaland. However while cost-cutting and creating much lower prices compared to their competitors, Ingvar kept in mind not to affect the quality of the products. Reducing costs at any given opportunity and saving where possible was the initial concept but achieving high quality furnishing to ensure people live a better life.
Now IKEA is a global trademark that represents home furnishing with over 300 stores in more than 35 countries.
Marketing entry strategy Kiefer and Steve (2009), states IKEA’s success as being nothing short of a global phenomenon. Giving IKEA such a high rating due to their success, it must suggest that they have been very wise in planning their market strategies to enter different global markets. In fact they are armed with a wide range of international experience in Europe, North America, and most recent Far East Asia. They see Far East Asia as an emerging market, which counts



Bibliography: 1. Anderson, J., and C. Markides (2007) ‘Strategic Innovation at the Base of the Pyramid’, MIT Sloan Management Review 49.1: 83-88. 2. Brazil facts and statistics (2011) [Online] Available at: http://www.kwintessential.co.uk/resources/global-etiquette/brazil-country-profile.html (Accessed: 15th November 2011) 3 4. Brazil Travel to Brazil, (2010). FIFA World Cup Brazil. Available at: http://travel-to-brazil-vacations.blogspot.com/2010/07/2014-world-cup.html (Accessed: 15th November 2011). 5. Country analysis Brazil (2011) [Online] Available at: http://www.scribd.com/doc/28796465/Country-Analysis-Brazil (Accessed: 19th November 2011) 6 7. Dana, B. and Gabriel, B. (2009)’ Tranational Strategies Adopted by Furniture Manufacturers. Case Study: IKEA’, ProLigno, 5 (3), p55-61. 8. Doing business in Brazil (2011) [Online] Available at: http://www.uhy.com/media/PDFs/doing_business_guides/Doing%20Business%20in%20Brazil.pdf (Accessed: 30th November 2011) 9 10. Euromonitor. (2009). Housewares and Home Furnishings in Sweden. Available: http://www.euromonitor.com/housewares-and-home-furnishings-in-sweden/report (Accessed 22 November 2011). 11 12. IKEA. (2011). Yearly Summary. Available: http://www.ikea.com/ms/en_CA/about_ikea/facts_and_figures/yearly_summary.html (Accessed 22 November 2011). 13 14. Kiefer, L. And Steve, C. (2009) Global Marketing Management. 2nd ed. New York: Oxford. 15 16. Liliya, A. and Veronika, V.T. (2010) ‘Branding Capability of Technology Born Globals’, Brand Management, 18 (3), p212-227. 17. Mandhachitara, R. and Poolthong, Y. (2011) ‘A model of customer loyalty and corporate social responsibility’, Journal of Services Marketing, 25(2), pp.122–13. 18. Moon, Y. (2005). Break Free from the Product Life Cycle. Available: http://hbr.org/2005/05/break-free-from-the-product-life-cycle/ar/ (Accessed 22 November 2011). 19 20. Save the Children. IKEA, Save the Children and UNICEF joint campaign press. Available at: http://www.savethechildren.net/alliance/media/newsdesk/2006-11-15.html (Accessed: 17th November 2011). 21 22. Sport. BBC. Available at: http://news.bbc.co.uk/sport1/hi/olympic_games/8282518.stm (Accessed: 25th November 2011). 23. UNICEF. UNICEF 's corporate partnerships. Available at: http://www.unicef.org/corporate_partners/index_25092.html (Accessed: 17th November 2011). 24. Van Kempen, L. (2004) ‘Are the Poor Willing to Pay a Premium for Designer Labels? A Field Experiment in Bolivia’, Oxford Development Studies 32.2: 205-24. 26. World fact book (2011) [Online] Available: https://www.cia.gov/library/publications/the-world-factbook/geos/br.html (Accessed: 25th November 2011) 27

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